For the time being, vaccine euphoria is outweighing bad economic news triggered by COVID-19 restrictions.
Chris Williamson, chief business economist at IHS Markit, said, “The eurozone economy has plunged back into a severe decline in November amid renewed efforts to quash the rising tide of Covid-19 infections. The data add to the likelihood that the euro area will see GDP contract again in the fourth quarter.”
While the November contractions aren’t as severe as those seen this spring, they could still prove damaging.
It’s a warning to the United States, where policymakers are grappling with how to handle soaring cases and record hospitalizations from the virus.
JPMorgan’s chief economist Bruce Kasman said these shifts will inevitably hit global growth, slowing the overall recovery.
Kasman advised, “With the US and Europe now projected to contract and with the pandemic worsening, the rest of the world is likely to buckle.”